by Our News Desk
WAGES have plummeted by £1,300 a year despite almost a million jobs being created, according to new research published yesterday.
Just one in four cities were delivering a “high-wage, low welfare” economy, the politically neutral urban policy researchers Centre for Cities found.
The think tank’s study of 63 cities between 2010-14 found that almost half were classified as having low-wage, high welfare economies, including Hull, Blackburn, Blackpool, Mansfield and Sunderland.
London, Reading, Aldershot, Aberdeen and Milton Keynes were among those considered to have a high-wage, low-welfare economy. Cities with high wages had seen the fastest jobs growth.
The findings vindicate criticism by the TUC, which has accused the government of obliterating welfare but doing nothing to pay workers a decent wage.
And they complement a separate study by the Social Market Foundation (SMF) that found the financial worries of Britain’s workforce are having a negative impact on productivity.
The independent public policy think tank found that threequarters of workers are struggling with money woes, a “significant cause of stress” across Britain’s workforce.
SMF economist Katie Evans, who wrote the report, said: “The UK’s workforce lacks financial resilience. It’s clearly affecting our ability to concentrate at work and blunting our productivity.
“This low financial resilience is a problem across industries and it’s getting worse.
“These money worries have a clear impact on how people feel and behave as they go about their day-to-day lives and jobs.”